IMF signals confidence in Sri Lanka’s ability to manage external shocks

Friday, 22 May 2026 00:00 - - {{hitsCtrl.values.hits}}

Mission Chief for Sri Lanka

Evan Papageorgiou

International Monetary Fund (IMF) Mission Chief for Sri Lanka Evan Papageorgiou yesterday signalled confidence in Sri Lanka’s ability to manage the economic pressures arising from the Middle East war, saying the country’s stronger policy framework, improved reserves, and ongoing reform program had placed the economy in a better position to absorb external shocks than in the past.

“Sri Lanka’s reform program continues to move forward, with the IMF Executive Board set to consider the combined Fifth and Sixth Reviews under the Extended Fund Facility (EFF) next week (27),” Papageorgiou said in a statement.

“Over the past years, authorities have made significant progress in restoring macroeconomic stability, rebuilding reserves, and strengthening confidence. These efforts have been recognised by the public, investors, and stakeholders, and have helped place the economy on a firmer footing.

“Recent global developments have brought renewed pressures, as is the case for many economies in a challenging external environment. Navigating these shocks is never straightforward, but Sri Lanka’s policy framework today is considerably stronger than in the past.

“Maintaining a consistent policy course and continuing to allow the economy to adjust to evolving conditions will be key to sustaining the gains achieved so far.

“We look forward to continued close engagement with the Sri Lankan authorities as the reform agenda advances,” Papageorgiou said.